Local Patterns of Co-Location in the Retail Sector

Authors: Irene Farah*, University of Chicago, Luc Anselin, University of Chicago
Topics: Spatial Analysis & Modeling, Economic Geography, Urban and Regional Planning
Keywords: local patterns, co-location, retail, agglomeration economies
Session Type: Paper
Day: 4/5/2019
Start / End Time: 9:55 AM / 11:35 AM
Room: Roosevelt 0, Marriott, Exhibition Level
Presentation File: No File Uploaded

The assessment of the strength and range of co-location among economic activities is a critical aspect in operationalizing the concept of agglomeration economies, central in regional science and urban economics. While much of the literature deals with aspects of agglomeration in the manufacturing sector, in this paper, we focus on spatial clusters and co-location patterns in the retail sector, specifically with attention to different types of activities (e.g., hardware stores, drugstores, groceries) and their organizational structure (standalone vs branch). In addition, we specifically address local patterns, whereas much the of literature has illustrated global measures. We take advantage of the information in the National Establishment Time Series (NETS) data set to track the change over time as well as across space. From a methodological perspective, we investigate the different insights provided by a point pattern approach on the one hand (e.g., local K function, co-location coefficients) to that following from a lattice data approach (e.g., local join-count statistics, bivariate local join-count statistics). The locations, births and deaths of establishments over time and across space can be viewed as points, or as presence/absence by parcel, allowing the comparison of the point pattern and lattice data methodologies. We investigate local patterns of co-location in the retail sector using annual data from 1989 to 2013 for the Chicago Metropolitan area.

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